Ontario's LCBO has asked vendors to stop selling certain wines as a result.

Canadian Press

Toronto Star via Getty Images

Stock photographs showing the LCBO located at Queens Quay and Cooper Street in Toronto on October 17, 2014.

UPDATE - 8:10 p.m.: The Canadian Food Inspection Agency has reversed its decision. In a statement sent to HuffPost Canada, the CFIA said it regretted the fallout from its initial assessment.

"In our assessment, we did not fully consider the Canada-Israel Free Trade Agreement (CIFTA). Further clarification ... indicates that these wines adhere to the Agreement and therefore we can confirm that the products in question can be sold as currently labelled."

TORONTO — The Liquor Control Board of Ontario has asked vendors to stop selling and importing certain wines labelled "Product of Israel" after Canadian food authorities took issue with their country-of-origin declaration.

In a letter to vendors, the LCBO says the Canadian Food Inspection Agency has flagged wines from the Psagot Winery and Shiloh Winery.

The letter notes that the CFIA says calling the wines a "Product of Israel" would not be acceptable because they are made from grapes in the West Bank occupied territory.

It goes on to say the CFIA has advised the LCBO that the federal government doesn't recognize Israel's control over several territories it occupied in 1967, including the West Bank.

The letter says wine products from those regions that are labelled products of Israel would be considered misleading under the Food and Drugs Act.

The letter says the LCBO is seeking clarifications from the CFIA on how wines from these regions should be labelled to comply with the act.